September 2nd, 2009 by debtelimination
According to reliable estimates, the Citizens Advice Bureau handles the financial queries of about 4800 debt-ridden individuals per day. Personal debt is the source of various problems like creditor harassment, financial difficulties, deteriorating health, etc. Debt management plans are specifically designed to manage and eventually eliminate your financial difficulties. So are debt settlement program, which can help you clear off all your debts within a year. Both debt relief programs prevent harassment from creditors. However, you need to know which credit card debt relief options can resolve your problems best.
Consumer Debt Management: Is it for you?
If you are burdened by unmanageable levels of outstanding debt, the best thing you can do is to go for a good debt management plan. It doesnât matter whether you are a homeowner or a tenant; debt management can be availed of by either, while credit debt relief is an option only for the latter.
The qualifying criteria for debt relief are higher than usual; so many people with personal debts may not qualify for it. A debt management or debt consolidation program clubs together all unsecured debts into a single one. The debtor is supposed to make a single payment to the debt management company, which then pays off multiple creditors on a pro-rata basis. While a number of these programs help to freeze interest rates and other charges, no all guarantee to do so. Opting for this program essential if you are looking for total debt elimination, but be prepared to wait for a few years in order to clear off your debts entirely.
Find a Debt Settlement Solution to prevent Creditor harassment
You can avail of debt settlement if your unsecured liabilities are below a certain pre-determined limit. This is basically quick-fix debt relief for families having low incomes. By following the guidelines of a qualified debt counselor, you can get rid of debt within a year. Unlike debt management, debt settlement is legally binding, so there are fewer chances of creditors harassing you for payments.
If you are a homeowner with having a relatively low level of debt, a credit card debt management program would help you the most. However, debt consolidation loans or settlement will help to write off your liabilities within no time if you are not a home owner; have few assets and no disposable income to speak of.
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This entry was posted on Wednesday, September 2nd, 2009 at 10:13 pm and is filed under Financial Markets, Financial Planning, World, financial education. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.